Sunday, Aug 21, 2011
0728 GMT [Zawya Dow Jones]--EFG Hermes cuts Gulf Navigation's fair value target to AED0.25, from AED0.335 previously; keeps its sell rating. "While the shares have fallen 30% YTD, the stock, at an estimated 30x 2012 earnings, remains expensive." Says the disposal of GulfNav's six PROBO vessels is positive, but the company needs to inject equity or debt finance to grow the VLCC business. "Given currently weak market conditions, we believe that this could be difficult. We would continue to avoid the stock in the short term." Shares trade -4.6% at AED0.288. (nikhil.lohade@dowjones.com)
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(END) Dow Jones Newswires
21-08-11 0733GMT
